How Much is Auto Insurance? (7 Factors That Influence the Price)

How much should I be paying for car insurance? Well, the price of car insurance is not fixed. It depends on many factors which determine the amount of money you need to pay for the insurance company services.

The average car insurance cost per month is $118,63, around $713 for six months, and $1,426 for the annual premium. However, it's recommended to opt for the yearly or six-month policy since you can get a significant price discount which is not included in monthly payments.

Speaking of the factors that impact the price, they are associated both with the car and the driver. The insurance companies tend to make in-depth research on you and your machine, so, don't get surprised if the insurance agent shows the enormous interest in your marital status, the distance between your home and work, and your vehicle specifications.

Here is the list of 7 factors that influence your auto insurance premium price – they may sound unbelievable at first, but it'll get more evident when you see the reasons.

1. Age

The age is one of the decisive factors for the insurance price. If you’re 25 or younger, you’re more likely to pay expensively for the policy – it doesn’t sound convenient since there are always price advantages for teens and young adults, but this limitation is not crucial in vain.

The insurance companies see the age as the reflection of experience – the younger you are, the less experience you have; new drivers bring more risk, and they are more prone to the accidents than the older ones.

You can’t grow older overnight, but the best thing you can do is to try to avoid the accidents and the violations as much as you can. Also, try not to use the car frequently – walk, ride a bike or take public transport – the insurance company will have that in mind, and they will lower your car insurance cost.

2. Gender

Believe it or not, gender plays a significant role in determining the cost of car insurance. Despite the universal belief that men are better in car steering, the insurance companies see women as more reliable and more conscious drivers.

According to statistics, insurance policy price for women used to be about 23% lower than the men’s – that’s explained with the fact that male drivers use the car more often, they are more involved in accidents, and they receive speeding tickets more frequently than women.

However, many states consider this factor irrelevant, since the gender can’t determine who drives better. Nowadays, the difference between the price is about 1%, which is a significant change comparing to the past – so, car insurance average cost for men would be $717 for six months premium, and $714 for women.

3. Location

The factor of location can be observed in two ways – the place of your residence and the state where you live.

Speaking of the first point, insurance companies need to know whether you live in the city or in the suburbs – and that’s how they form the price. If it takes you about two hours to arrive at your workplace, get ready to pay more for the policy – the more time you spend on the road, the higher chance to get involved in the accident.

The insurance premium is differently priced in almost every state. Have a look at the four factors that influence it:

Weather conditions: if you live in a coastal country, there is a risk of hurricanes, and if you live in some desert place, you might experience cracked windshields caused by falling rocks – the insurance policy is expensive in both cases.

Population density: if you are in a crowded state, you must deal with heavy traffic – so, there is more chance of getting into the car accident. Again, prepare yourself for a higher price.

Crime rates: the bigger the state, the higher the crime rate. If your state deals with vandalism or thefts, the insurance companies tend to increase the pricing.

Dangerous intersections: big states are famous for busy intersections and developed way stops. However, that brings more risk for the drivers, and that's another reason for the high cost.

According to this, Minnesota would be one of the most affordable states with average car insurance cost of $137 per month. On the other hand, states like Rhode Island and New York would be the most high-cost countries at $232 for the monthly premium. Speaking of medium-cost places, Alaska would be an example, with average monthly car insurance fee of $167.

All in all, it’s not that common that people move to the other country because of the car insurance price. Again, keep your driving record clean – it will lower your cost a bit.

4. Marital Status

You must be wondering how this factor can impact the price. Well, married people look more trustworthy in the eyes of the insurance companies, and it's not rare that their policy prices are lower than the single people's.

For example, a married man in his 50s is less prone to traffic violations since it's presumed that he avoids using the phone, texting or taking photos for the Instagram story while he's driving. Married couples are assigned as "safe" in general, and the statistics show that they are less likely to file the claim.

Another factor that impacts the insurance cost for married couples is combining policies. In case both of them have clean driving records, they save money by getting a multi-car discount. However, if one of them has a poor record, there's a possibility of a rate increase.

In case of the divorce, ex-spouses lose the benefits, and they won't become eligible for the marital discount.

5. Vehicle Type and Model

Did you know that your car speaks for the car insurance cost? If no, then you’ll be surprised to know that every vehicle generates its insurance policy price based on the VIN (Vehicle Identification Number). Insurance companies use this number to access the car’s mileage, driving record and accident history since they impact the premium.

The vehicle type that requires the most expensive insurance premium is luxury type – some of the machines which belong to that group are Mercedes S-Class, Range Rover, and Audi A8 and the average car insurance cost for six months policy would be $1,009.

The reason for their expensiveness lies in their demanding maintenance and high repair costs due to high-quality materials and newest technology.

On the other hand, the insurance for minivans and vans is the most affordable compared to the different vehicle types. They are family-oriented, and that leads to a cheaper premium since it's more likely that families drive with more caution.

The best representative would be Honda Odyssey LX whose annual insurance rate is $1,298.

Besides, sedans and greens request pricier insurance (around $850 for six months), while trucks and SUVs can be insured for around $750 for six months policy.

6. Your Driving History

In most cases, driving history has the most significant impact on your policy price. When you decide to purchase a premium, the insurance companies will check your driving record for possible violations, accidents or DUIs (driving under influence) and then they’ll give you the exact cost based on your results.

If your driving record is clean, the risk of involving in the accidents is lower, so you can expect your premium to be cheaper. However, if there are signs of misbehavior, you'll need to pay more for the coverage.

The companies usually check the records when you apply for the policy and again when it’s time for its renewal. If they see that you’ve made two or three violations in a row within the six months, some of the companies will even refuse to sell you the premium.

Since this is a factor that you can "control," make sure you avoid any possible violation that could put in danger your financial status and, most importantly, your life.

7. The Number of Deductibles

When purchasing a policy, you need to determine how much money you can pay for possible car accident expenses. That amount of money is called deductibles, and it significantly impacts the price.

For example, if you deposit $500, and the damage costs $1,200, the company will pay $700. The less money the company needs to pay, the cheaper the policy you get. There are two situations in which you don’t have to pay for the deductibles:

It’s another driver’s fault: if another driver hits you and he or she is officially guilty, that person’s insurance should cover the expenses for your repair.

You don’t want to repair your car: in that case, the company notifies them on how much the repair would have cost (minus deductible) and sends them a payment. For example, if the damage costs $1200, your deductible is $500, the company will give you a check for $700.

Are You Looking for Affordable San Diego Car Insurance Premium? Let H&M Help You!

Are you looking for the coverage that will be both effective and affordable? If so, you’re in the right place!

We offer a variety of insurance options, and we support the California insurance companies like Progressive, Nationwide, and Safeco, and we can make the policy which suits your budget.

H&M insurance agency provides you with the best San Diego car insurance – don’t hesitate to contact us and get additional information.